One hears this statement a lot. Yet, those that proclaim this never explain what they mean by 'intrinsic value'. And they have good reason to not be drawn on a definition, for they would fail since it would be easy to shown how this value is subjective and contextural.
Does the internet have intrinsic value? Does an encyclopedia have intrinsic value?
Let me give you a proposition that has practical value: those that talk about 'intrinsic value' don't have clue of what they are talking about.
Value of a thing results from subjective objectives defined in the system external to a thing. Value is never intrinsic but an emergent property.
Does gold have intrinsic value? Most would say yes, but what if a volcano spews out 100x the current known supply. What would we expect to happen to the fabled intrinsic value. But one might say that gold has intrinsic physical properties such as its high density, inertness or conductivity. If you are on an island surrounded by gold bars but no food, suddenly that intrinsic value does not look that intrinsic after all.
Bitcoin has value due to its revolutionary properties, network effects, and first mover advantage.
Cogito ergo sum - now that I think may well have intrinsic value.
UPDATE: An interview with an oldtimer,Bob Moriarity claiming gold has intrinsic value but bitcoin does not. Notice no definition of intrinsic value.
